- August 29, 2018
- Posted by: ipaytotal
- Category: best high risk merchant account provider, best high risk merchant services, high risk merchant account provider, high risk merchant payment processor, high risk payment gateway uk, Nutraceutical Merchant Account, Nutraceuticals Merchant Account Service
NUTRACEUTICAL MERCHANT ACCOUNT
A nutraceutical merchant account furnishes business owners the capabilities of accepting credit cards, debit cards, and stored value cards, for payment on goods and services.We at Ipaytotal specialize in High Risk Nutraceutical Merchant Accounts and High Risk Nutra merchant accounts. We practically approve every business type, even if you have been turned down by other high risk payment processors in the past. With decades of experience, our team is here to help.We’re available to answer any questions and provide ongoing continued support for our valued customers.We can accommodate nutraceutical supplement merchant accounts for companies marketing nutra vitamins and supplements on the internet with credit card processing solution for this industry. We specialize in high risk credit card processing and have differentiated ourselves as experts in the Nutraceutical merchant services field. Every year, many adults take dietary supplements, many of which do so to fill in the gaps in their nutrition, according to a 2016 economic impact report funded by the Council for Responsible Nutrition. The number of consumers are increasing on a day to day basis,which has resulted many entrepreneurs to open their own Nutraceutical businesses.Since manufactures of dietary supplements make false claims of its ingredients, its makes banks nervous when it comes to working with businesses in this industry. Since the nutraceutical industry has a reputation of being a high-risk for credit card processors, banks don’t like to approve Nutraceutical merchant accounts for these businesses.
Types of businesses in the nutraceutical industry
Companies in the nutraceutical industry develop and manufacture vitamins, dietary supplements, herbal remedies, and other natural health products that claims better health and wellness.Many Small companies compete explicitly by specializing in niche nutritional products while large companies often benefit by solely focusing on manufacturing, research, and marketing of products.
Ipaytotal offers nutraceutical merchant accounts to companies that sells the below listed products:
- Dietary supplements
- Medicines made from botanical components
- Natural male enhancements
- Weight Loss supplements
- Workout and sports performance supplements
Additionally, we also have a track record of working with startup and businesses which have been rejected or shut down by other high risk nutraceutical merchant account processors.
What to expect during the nutraceutical merchant account application process
Determining risk is the single most important job of underwriters. They want to confirm that approving a high risk nutraceutical merchant account will not cause them any financial disturbance. Underwriters begin the process by ensuring high risk nutraceutical merchants are running legal, stable businesses that follow all necessary guidelines.
A merchant’s credit scores, credit card processing history, bank statements, and its website are some of the factors that plays an important role in determining the business’ risk. A failure to mention a clear privacy or a refund policies on its website, can also add to a merchant’s risk level.
Other factors that negatively impact a merchant’s application are:
- A negative bank account balance
- Unpaid bills and late payments
- A history of high chargeback ratios
Last but not the least, underwriters need to see that high risk nutraceutical merchant account processors are not taking any undue risks when they approve an account for a nutraceutical merchant. Online and retail businesses that take these steps are likely to get approved ..
Why do nutraceutical merchants end up with so many chargebacks?
High risk nutraceutical merchants are vulnerable to chargebacks because dietary supplements and similar products aren’t strictly regulated by the government, and the claims they make on their products are not substantiated by a regulatory body. Since the claims often are not supported by clinical trials or scientific evidence, many impulse buyers who take the supplements without making any lifestyle changes have buyer’s remorse. Such buyers are quick to blame the merchant and its supplements instead of looking at their own effort(like eating habits or routine exercise). This results in a chargeback.
Moreover, the way nutraceutical products are ordered and paid for, there is a greater risk of disputed credit card transactions. For example, many dietary supplements and vitamins are sold to customers on trials and then, their credit cards are charged for a supply after the period is over. Whether the customer approves the product or not,their card is charged once the period is over, they end up filing a chargeback.
Non tested or tried claims about nutritional supplement benefits and frauds are spreading in the nutraceutical industry. There have been reports of dietary supplements not containing the ingredients or the doses that are marketed on their labels. This leads to chargebacks, even potential legal issues. Such unhappy customers also leads to disputed credit card transaction.
Since some nutraceutical products cannot be sold or shipped to certain countries, merchants must know and understand these regulations. Otherwise, shipping can become a big problem for nutraceutical merchants. The best way to avoid reshipments and eventual chargebacks is to ensure that the item can be shipped to the country where it was ordered and that the shipping information is verified for accuracy. Taking such small measures will not only save a merchant from chargebacks, but will also save money on lost merchandise.
High risk nutraceutical merchant processors are quick to terminate a high risk nutraceutical merchant with excessive chargebacks because they end up paying for them. High risk nutraceutical merchant account providers know that if businesses don’t have the cash to pay refunds to dissatisfied customers or chargebacks for disputed transactions, these funds could end up their responsibilities.
Also, high chargeback risk the relationships High risk nutraceutical credit card processors have with their sponsor bank and credit card companies. High risk nutraceutical merchant account providers that continue to process purchases for businesses that can’t maintain low chargeback ratios also may face fines from the credit card companies. Damaging a relationship with a bank or financial penalties are far more expensive for High risk nutraceutical credit card processors than any profits they can make from High risk nutraceutical merchant’s business.
How to Fight chargebacks
Too many chargebacks are bad for any business. That is why businesses are encouraged to take steps to lower their chargeback ratios.
Issuing refunds is any time better than piling up huge chargebacks. When a dissatisfied customer contacts a merchant, the customer service representative should immediately issue a full refund instead of explaining the charge and that the customer agreed to it.
A large number of chargebacks is mostly due to customers not recognizing transactions on their credit card statements. Therefore, High risk nutraceutical merchants are advised to use descriptors that clearly display a merchant’s name and contact information, including phone number and email address.The way the descriptor will appear on a credit card statement also should be clearly noted on the merchant’s website, as well emails and receipts.
It is always a good idea to send an automatic email receipt once a transaction is complete. Such small gestures helps a customers to build trust on the merchant.
Merchants that don’t actively fight chargebacks are doing injustice to their businesses. If chargeback ratios aren’t kept under limit, nutraceutical merchants can cost themselves revenue and,ultimately, their merchant accounts.
Who Needs Nutra Supplement Merchant Accounts:
The health and fitness conscious generation have embraced nutraceutical supplements as part of their daily rituals, which resulted the Nutraceutical industry to have an explosive growth.Much of this growth is due to the continuous strides made by the health-conscious consumer toward functional foods and beverages, dietary supplements and personal fitness..
But the biggest hurdles you will come across is in the form of chargebacks and tempering your marketing strategies to ensure you are not practicing business in a poor or unethical manner. One specific type of chargeback that could potentially pop up will come in the form of customers cancelling because they do not believe the product met the advertised benefits. These forms of chargebacks may be unavoidable at times, but still should be monitored carefully. Both of these hurdles have the capability to terminate or suspend your merchant account. Being watchful to these red flags and avoiding, or in the case they do occur, reacting accordingly will ensure you have a healthy account and do not lose the ability to process credit cards. To continue processing cards will give your business many opportunities that would not have been available otherwise. With the growing trend of natural based alternatives growing by the year, this is a peak opportunity to utilize on the new customers that are turning to the market. The ability to sell your products to every corner of the globe, brings with it unlimited sales possibilities. Ensuring that you have a tried and trusted merchant account service will help distinguish you from the competition.
What are nutraceuticals and what are Nutraceutical Merchant Accounts?
It is a pharmaceutical-grade and standardized nutrient. Nutraceutical is the food or a part of food that provide medical or health benefits, including prevention and treatment of disease i.e. nutrients with medical benefits. Nutraceuticals, which are generally made from herbal/ botanical raw materials, are functional food with added ingredients that provide physiological benefits or reduce the risk of chronic diseases. Nutraceutical merchant accounts are the merchant accounts that enables merchants to accept credit and debit card transactions and it also helps the merchant to increase the growth of their business. They can also do their business globally.
Nutraceuticals vs. Supplements and “Functional Foods” –What’s the Difference Anyway?
A functional food is the food with enriched benefits and contains additional ingredients. The best example of functional food is oatmeal which contains the which contain the fat-soluble ingredient.
As the main difference between the dietary supplements and the functional food is that the functional food is like the food while dietary supplements are like drugs and have the properties of drugs also in high concentration.
Nutraceuticals are the sector of dietary supplements and the dietary supplements which are made only from whole foods augment health.
Steps to Building a Successful Nutrition Business
Most consumers today are concerns about their diet, nutrition i.e., diet, and nutrition are the major areas where the consumers spend their time and money. Nutrition business is the good business to start with and to help people refine or overhaul their eating habits. People today because of their busy schedules eat less than the recommended amount of vegetable, fruits, whole grains, dairy products, and oils. Instead of taking these foods, they take nutraceutical products due to which there are the recent growth and explosive demand for nutraceutical products and services. This demand gives the opportunity to the distributors to develop and create a successful nutraceutical business that fulfills the needs and demands of consumers worldwide.
Early research is necessary to get into any type of business. Take time and do research by reading magazines. They give so many business opportunities and it is also necessary to know about the consumers demand in the market, study where there is the great demand of your product and especially which segment of consumers is the target of your product. To know more about the nutraceutical ,call gyms, doctors, hospitals and other potential businesses. Try to find out the consumers who are using nutraceutical products and from where they are purchasing the products. Research the requirements for education, training and licensing to establish a nutritional business.
Understand the Competitive Landscape
Before starting any type of business it is a must do your homework, here homework implies to making a list of your competitors and visiting their websites to study the products which they are offering and what new they are offering and how they are differentiating themselves from others. Look for the gap or for the product they are missing out and try to fulfill that gap to attract your customers. Explore the market and find out the current popular product in the market and come up with the new and unique idea that is best from the existing product or else do some positive changes in the existing product in the market.
Define your Target Market
It totally depends upon the product, that the product belongs to which consumers. To succeed in the nutraceutical industry, a brand needs to know exactly which market to target, and where consumers shop for their nutritional products and services. As you are a nutraceutical product then mainly your consumers are the peoples who use to go the gym and the high-class peoples or the peoples who are busy in their work. Once a company clarifies who its target audience is, it can explore what types of nutraceutical products appeal to consumers, and the company can better define why consumers should choose to purchase its products. Once a company has done this successfully, it is on its way to building a strong supplement distribution business.
Consistent Brand Image
In order to have a consistent brand image, a company should create guidelines that define how to use the logo design, where to place the brand logo, and define the slogans or taglines. It is also important to use standard colors and fonts for all marketing materials. Once a company has created a nutraceutical brand that embodies the message it wishes to portray to the target consumer market, it’s time to promote it on everything including the website, labels, packaging, advertisements, blogs, and press releases.
How to Get a High Volume High-Risk Nutraceuticals Merchant Account
Getting a high volume high-risk nutraceuticals merchant account isn’t easy. Presenting your business in the best possible light from point of first contact is important because merchant accounts are essentially a line of credit from a processor.
Due to the nature of this business,if a high-risk nutra merchant account is approved, payment processors are likely to set monthly processing limits.We at Ipaytotal knows how to navigate the high risk nutraceutical payment processing space and has developed exclusive partnerships that allow for our qualified nutraceutical merchants to process any volume without any monthly limit.
Since higher risk is associated with nutraceutical products,therefore, more due diligence is required during the new merchant on-boarding procedure. This means underwriters need to review a range of documents to assure the business is compliant, financially sound, and a good credit risk. The degree of risk is further assessed by credit history, ticket size, and processing volume. Proper classification is vitally important to prevent funds from being held in reserve for misrepresentation.
Multiple Processing Choices:
We offer ecommerce gateway solutions, providing a seamless customer shopping cart experience, and call center solutions for telemarketing merchants. Our team has decades of experience and will work with you to determine a perfect payment processing environment.
- CRM Payment Integration
- Ecommerce Shopping Cart Solutions
- Virtual Terminal Payment Processing
- Secure Application, offers accurate and efficient submission.
- Multiple Platforms, including CRM & Ecommerce Integration
- Personalized Account Managers to guide you through the process.
- Diversified Acquirers with appetite in the nutra space.
- Fast decisions and fast approval turn-around.
To Know More about Nutraceutical Merchant Accounts
Give us a call at+44 800 776 5988 or get in touch with us through our website. Even if you’re not a customer of ours, we want to help you understand the process so you can make the best decisions for your business. We believe transparency and proactive education is the best policy.